Eight of nine sectors moved
higher on Tuesday…XLV, XLK and XLU were the strongest sectors…while XLB was the weakest sector.
Breadth strengthened
as advancers
led decliners…2.02 to
1 on the NYSE and 2.33 to
1 on the NASDAQ.
Tuesday – strengthened, advancers led
Monday – weakened,
decliners led
Friday – strengthened,
advancers led
Thursday – weakened,
decliners led
Wednesday – New Year’s
Tuesday – strengthened,
advancers led
SPY up 1.12 at 183.48 volume 86 million shares
VIX down .63 at 12.92…
TNX down .24 at 29.37…
TLT up .26 at 102.86...
XLF unchanged at 21.91 volume
47.5 million shares, above average
AAPL down 3.89 at 540.04 volume 11.3 million shares
FB up .72 at 57.92…volume 77.2 million shares
Technical
Commentary:
SPY +
0.61%, DIA + 0.66%, IWM + 0.84%, QQQ + 0.93%.
Since
Friday when the SPY closed just below unchanged and the VIX closed lower Chart Signals has
been looking for a support bounce and on Tuesday the market bounced led
by QQQ and IWM. QQQ formed
a classic bull flag entry signal led by GOOG, CMCSA, MSFT, AMGN, AMZN, CSCO,
EBAY, FB, PCLN and MU.
SPY, IWM and DIA are in bull flag
patterns and could give an entry signal on Wednesday. Many stocks including ADBE,
ADSK, AKAM, ALXN, CA, CERN, CMCSA, EBAY, NTAP, SYMC, YHOO, and RAX gave bull
flag entry signals on Tuesday while many other stocks are setting up for a potential bounce Wednesday.
After the
close MU +1.55, +7.13% gained after reporting better than expected
revenues and earnings. Revenue increased
42% from last quarter and 120% over the same quarter a year ago. MU’s Lexar unit announced they will begin
selling flash drives with 128 GB and 256 GB options.
APOL +2.61,
+9.71% in
after-hours trading reported EPS $1.04 versus 90 cent estimate, revenue came in
$4.28M below $860.58M estimate and the APOL raised its 2014 sales guidance.
SCHN reports before the open
Wednesday. Watch for any potential
impact on X, AKS, ATI, NUE and STLD, all of which are forming bull flag
patterns.
TWTR -4.83, -7.29%...traders get the message and sell on Wednesday.
Trade with the trend, move your protective stops. Continue to follow your rules.
Remember it is big money
that creates and sustains the trend. As Granville wrote,
“technical analysis is the art of tracking the market, following the
footsteps of the ‘smart money’ crowd.
The ‘smart money crowd’ is no mysterious ‘THEY.’ It is simply a collection of people who are reading the market correctly,
seeing through the maze, unconfused by this hall of mirrors.”
Short-term
up trend Chart Targets:
SPY = 184.69, 186.06, 186.90…
QQQ = 87.79, 88.74…
IWM = 115.98, 116.70, 118.54…
Q4 earnings season unofficially starts next Thursday,
January 9
with the AA earnings release after
the close.
Tuesday – APOL, MU
Wednesday – BBBY, MON,
SCHN
Thursday – AA, FDO,
Q4 Earnings Reactions
Positive Reactions – MU,
APOL
Negative Reactions –
The Market Forecast Green Line is above 80.
____________________
Setups
H Breakout: AMGN,
BIDU, CTRX, EQIX, FB, HSIC, KRFT, NVDA, A, CMG, SINA, TSL,
Diagonal Breakout:
Bull Flag: ESRX, NXPI, TSLA, ATI, CIEN, DDD, DRYS, MCP,
RCL, SCTY, SSYS, TPX, UAL, X,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support:
C- Pattern:
Moves
New Highs: CMCSA, EXPE, GOOG, INTU, STX, WDC, WYNN, CSIQ,
NTES, P, SFUN, SPLK, VRSN, YNDX, YOKU, Z,
Gap Up: SPLK,
Gap Down: MAT, NFLX,
H Breakout: CHTR, GMCR, TRIP, BBRY, IBM, P, VECO, Z,
Diagonal Breakout: MU,
Breakout Test:
Bounce: ADBE, ADSK, AKAM, ALXN, CA, CERN, CMCSA, CTSH,
EBAY, FISV, NTAP, PCLN, REGN, SBUX, SIAL, SNDK, SYMC, TRIP, YHOO, ANGI, GOGO, NTES,
RAX,
MACD Divergence
Bounce:
Bear Flag:
Support Break:
______________________
78 out of 100 NDX
stocks closed higher on Tuesday.
Leading NDX 100 stocks included: TRIP, MU, EXPE,
GMCR, CMCSA, ILMN, WDC, STX, EQIX, SPLS
Lagging NDX stocks included: NFLX, DISH, GRMN,
CTXS, VRTX, MAT, AAPL, GILD, MXIM, DISCA
Leading stocks > +2% on Tuesday
included: GOGO, SFUN, VECO, CSIQ, SPLK, BBRY, ANGI, SCSS, CREE, SOHU
Lagging stocks < -2.0% included: GME, TWTR, ANR, JCP, WLT
Stocks to Watch on Wednesday
Holding Above 30 DMA= 65
CTSH, FISV,
INTU, WDC, GOOG, AMZN, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, MDLZ, MNST, YHOO,
DISH, SIAL, CMCSA, LBTYA, GMCR, DTV, STX, BIDU, BRCM, FB, WYNN, AVGO, INTC, EQIX, TSLA, ORLY, ADBE,
AKAM, VIAB, CA, CHKP, FFIV, LINTA, PCAR, TSCO, SNDK, VRTX, XLNX, ADP, ATVI, CTXS,
PAYX, CTRX, DISCA, FOXA, KRFT, AMAT, MAT,
NVDA, ALTR, BBBY, CSCO, SYMC, SBAC, CHTR, DLTR, ROST, HSIC, MXIM, SIRI
Moving Above 30 DMA = 12
AMGN, EBAY, ISRG, MU, MYL, NTAP, QCOM, SPLS, SRCL, ADI, VIP, TRIP
Moving Below 30 DMA = 0
Staying Below 30 DMA
CELG, GILD, KLAC, TXN, NXPI, AAPL, BIIB, CHRW, EXPD, WFM, FAST, VRSK,
NFLX, PCLN, GRMN, MSFT, CERN, COST, SBUX, LMCA, REGN, GOLD
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Neutral
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